Tag: SoFi

Months After Questionable Trades Cause Tax Liability, SoFi Makes Customers Whole

Posted on September 20, 2019

SoFi, a company initially focused on consolidating student loan debt, has been aggressively expanding into other areas of financial services. Within the past two years, they launched a robo-investing platform, high-interest cash account, and a self-directed brokerage platform with commission-free trading. Most recently, they announced proprietary ETFs offering an introductory 0% expense ratio through June 2020.

Read More…

Best Robo for First-Time Investors

Posted on September 13, 2019

Winner: Betterment
Runner-Up: SoFi

Betterment wins the award for Best Robo for First-Time Investors. With no investment minimum and a 0.25% annual fee, their digital-only product is a strong choice for first-time investors. Betterment’s single-goal financial planning tools make it easy for first-time investors to plan for future financial success. In addition, Betterment offers various financial planning packages that provide personal consultations with a financial planner on an as-needed basis, so users only have to pay for personalized professional help as they see fit. It is important to recognize that as a client’s assets grow, so do their financial planning and management needs. Betterment’s tiered service model is very attractive since an investor can always upgrade to the premium service levels as their needs grow, without having to change advisors. Betterment users can also open savings and checkings accounts with Betterment Everyday. Deposits in the savings account earn 2.39%  and are FDIC insured up to $1M. 

Read More…

Robo News: August 2019

Posted on September 3, 2019

  • Betterment, Wealthfront forced to lower rates on high-yield cash accounts
  • Capital One acquires United Income after buying 10% stake last fall
  • Wealthfront acquires Grove as it looks to bolster its cash management technology
  • Betterment reaches profitability 
Read More…

Robo News: July 2019

Posted on August 2, 2019

  • Betterment launches a new cash account with an industry-high APY; a debit card and checking account will soon follow 
  • Robos transition to more complete personal finance platforms 
  • Banking giant JP Morgan enters crowded robo field with You Invest Portfolios
  • Merrill Edge adds Guided Investing with an Advisor
Read More…

Robo News: April 2019

Posted on May 30, 2019

SoFi has been making headlines this month, as they have recently introduced two proprietary ETFs.  The funds are as follows:

  • SoFi Select 500 (SFY) tracks the performance of 500 of the largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors
  • SoFi Next 500 (SFYX) tracks the performance of the 500 smallest of the 1,000 largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors.

SoFi continues to diversify their offerings, as they have also recently announced a partnership with two fintech insurance firms.  SoFi now plans to offer homeowners and renters insurance through Lemonade and auto insurance through Root. This has been a busy month for Sofi, as they are rumored to be working on an additional round of funding, estimated as $500M.  This funding round, reportedly led by the Qatar Investment Authority, is expected to be at a similar valuation to their last round in February 2017.

Read More…

SoFi causes taxable gains, trades client accounts into proprietary ETFs without their consent

Posted on May 1, 2019

SoFi, a company originally built on consolidating student loan debt, has been aggressively expanding into other consumer finance markets. They first launched their robo investing platform in 2017, followed by their cash account offering in 2018, and a self-directed brokerage platform with no-commission trading earlier this year.  

“Although SoFi has a suite of undeniably compelling products, we question whether their customers are their top priority”

Read More…